Definition
Revenue share, or RevShare, is a commission structure where you pay affiliates a percentage of the revenue from each sale they drive. Instead of a flat dollar amount per conversion, the affiliate earns proportionally to the transaction value. If you set a 20% RevShare and an affiliate drives a $100 sale, they earn $20. A $500 sale earns them $100.
How it works
You define a percentage rate in your affiliate program settings. When an affiliate drives a conversion, your tracking system records the sale amount and calculates the commission as a percentage of that amount. For a subscription business, RevShare can apply to the first payment only or to recurring payments for the lifetime of the customer, depending on your program terms.
For example, a SaaS company might offer 25% recurring RevShare. An affiliate refers a customer who signs up for a $200/month plan. The affiliate earns $50 every month the customer stays subscribed. Over two years, that single referral pays out $1,200. This is why recurring RevShare is extremely attractive to affiliates who drive high-quality, long-retention traffic.
Why it matters
RevShare aligns incentives between you and your affiliates better than any other model. Affiliates are motivated to send customers who actually stick around and spend money, not just anyone who will complete a free signup. This naturally filters for quality because the affiliate only makes real money when you do.
The downside is unpredictability. Your cost per acquisition varies with order size, and if you offer recurring RevShare, your affiliate costs grow as your customer base grows. This can complicate financial forecasting. Many programs solve this by offering RevShare for the first 12 months or capping total payouts per referral.
Trcker tip
Trcker supports both one-time and recurring RevShare with automatic commission calculations on every payment event, so you never have to manually reconcile recurring payouts.